China Pushes Back on U.S. 100% Tariff Threat

Beijing warned it will not yield to U.S. threats after President Trump threatened a 100% tariff on imports by Nov. 1, urging disputes be solved through negotiation rather than escalation.

China’s Commerce Ministry said it does not want a tariff war but is prepared to defend its interests, and framed its response as answers from a spokesperson to media questions. The ministry reiterated that export licences for rare earths will be issued for legitimate civilian uses, while stressing these materials also have military applications.

New Chinese rules require foreign companies to obtain government approval before exporting products that contain rare earths sourced from China, regardless of where those products are manufactured. China supplies roughly 70% of mined rare earths and about 90% of global processing capacity, giving it leverage over critical inputs used in permanent magnets, high-performance alloys, electric vehicles, radar and other defense systems.

Washington has also threatened export controls on unspecified "critical software" and expanded U.S. export restrictions on Chinese firms. Both sides accuse each other of violating a fragile truce, and have announced reciprocal port fees. The dispute risks upending planned high-level talks and underscores how supply-chain dependencies for critical minerals have become strategic flashpoints.